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  1. 1. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 1 1. Introduction of Consumer behaviour The study of consumer behavior focuses on how individuals make decisions to spend their available resources (time, money, effort) on consumption-related items (Schiffman and Kanuk, 1997). The field of consumer behavior covers a lot of ground. According to Solomon (1996), consumer behavior is a study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires. “A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption on our work. He is the purpose of it and not an outsider on our premises. He is a part of it. We are not doing him a favour by serving him. He is doing us a favour by giving us the opportunity to do so.” Mahatma Gandhi Customer Vs Consumer The term ‘customer’ and ‘consumer’ have been used synonymously most of the time. The term customer refers to the purchaser of a product or service whereas the term consumer refers to the end user of a product or service. The customer may or may not be a consumer. Similarly the consumer may or may not be the customer. Definitions “Consumer behaviour is defined as activities people undertake when obtaining, consuming, and disposing of products and services.” - Roger D. Blackwell, Paul W. Miniard and James F. Engel “Simply it can be stated that consumer behaviour is the study of “why people buy.” “Consumer behaviour has been referred to as the psychological, social and physical behaviour of all potential consumers as they become aware of, evaluate, purchase and consume and tell others about products and services.” - Suja R. Nair
  2. 2. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 2 Obtaining: refers to the activities involved in purchase of a product. The activities include searching for information regarding product features, evaluating the alternatives, and purchasing. It also includes the place of purchase (shopping malls/nearest grocery stores), the mode of purchase (cash/credit card), etc. Consuming: refers to how, where, when and under what circumstances consumers use products. How – as side dish or main dish; Where – place (home, office or restaurant), When – time (morning or afternoon or evening) and under what circumstances (happiest moments or with friends or when alone). Disposing: refers to how they get rid of products and packaging. Whether they resell it or give it to children or use it for different purpose. “Consumer behaviour can be said to be the study of how individuals make decisions on how to spend their available resources (time, money, effort) on various consumption- related items.” - Suja R. Nair The above definition talks about various activities surrounding the ultimate consumer and helps the marketer to gauge the consumer behaviour specifically focusing on:  Who buys the products or services?  How do they buy products or services?  Where do they buy them?  How often do they buy them?  When do they buy them?  Why do they buy them? And  How often do they use them? These questions will help in understanding better what factors influence the decision making process of the consumers.
  3. 3. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 3 1.1.Consumer Behaviour – for Whom? It has been said that the field of consumer behaviour holds for various categories of people such as consumers, marketers and students of marketing. Consumers: All the firms have started considering ‘customer’ as the ‘king’ or ‘queen’. Interestingly, after liberalization of India’s economy, the market place is flooded with many new players including the MNCs’ resulting in the availability of more number of brands in every segment of the market. On account of this, the customer has started being choicy about what to buy. Thus all firms are becoming not only customer focused but are also trying to build relationship with them. This is done by continuously updating knowledge, information and understanding of the customer needs and expectations. Awareness of such devotion from the firm has made consumers to take more interest into their own consumption related decisions. They are keen to gain more knowledge about taking various decisions related to products and the promotional influences that persuade them to buy. Thus the study of consumer behaviour will enable them to become better and wiser consumers. Marketers: have woken up to the reality that exist in a competitive environment and hence they have to be more focused. The marketers have observed that the choice empowered customer cannot be taken for granted. This is particularly true because of the rapidly rising consumer earnings, sharp drop in the savings rate and increase in earnings resulting in a huge amount of disposable income that are spent lavishly. Simultaneously, there are changes occurring in the personal, social and influences making consumer more individualistic, conscious (about the products or services to fulfill their needs). So, the study of consumer behaviour will help marketers to assess the consumers’ needs and wants, and make better strategic marketing decisions. Students: As students of marketing, one will be more concerned with the study of consumer behaviour. Such a study will help to gauge into the consumer’s mind and underst and the various consumption related aspects of individuals (consumers). As students of marketing, understanding of consumer behaviour will make the study of ‘marketing management’ more interesting, understandable and increase awareness of its practical implications.
  4. 4. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 4 1.2. Developmentof ConsumerBehaviour as a Field of Study Consumer behaviour as a separate field of study gained attention from the 1960s. In the absence of a history or a separate research of its own, this new discipline drew/or borrowed concepts from other scientific disciplines such as –  Psychology (the study of individuals)  Sociology (the study of groups)  Socio-psychology (the study of how persons are influenced by groups)  Cultural anthropology (the influence of the culture and society on the individual)  Economics (the relationship between demand and supply in the flow of marketing activity) Positivism: Initially, the study of consumer research was emphasizing from a managerial perspective. In that, if the marketing manager could obtain consumption related behaviour i.e., if they are able to predict consumer behaviour, then they could influence it. This type of consumer behaviour approach came to be known as ‘positivism’. Interpretism: A group of academicians who are interested in the study of consumer behaviour and are more interested in knowing consumption behaviour going by the influence of the various disciplines on the consumer behaviour. This approach of studying the consumer behaviour with a view on understanding consumption behaviour and the interpretations of such behaviour is known as ‘interpretivism or post- modernism.’ These interpretivists have included many subjective aspects of consumer behaviour such as the effect of moods, emotions, type of situations etc. These interpretivists have also treated each purchase experience as unique because of the many variables which influence the behaviour at that particular moment of time. On account of its focus on the consumption experience, the interpretive approach is also referred to as ‘experientalism’.
  5. 5. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 5 1.3. Consumer Behaviourand Marketing Broadly, buyers can be classified into two major categories: Consumers (in the household sector, who buy goods or services for personal consumption) Industrial buyers (who purchase goods and services for carrying out activities in the various industrial units). In this age of information explosion, and internet marketing becoming a reality, it is all the more necessary that they (marketers) go for the creation of appropriate database which can help them to go for ‘tailor made’ products to suit individual tastes, preferences and buying behaviour. The industrial or organizational markets consist of buyers who buy goods and services needed in the process of furthering their industrial and institutionlal activities. The behavioural differences between the domestic consumers and industrial buyers can be done on the basis of the ultimate objective sought by them. While the domestic consumers seek need satisfaction and value added by the purchase of the product, the industrial buyers seek profit or measurement of improved operational efficiency. The latter’s behaviour, thus, will be influenced by the objectives of the organization they serve. Accordingly there is also a difference in the buying process adopted by both the domestic consumer and industrial buyer. A major implication of the differences in the consumer and industrial behaviour for marketers is the relative emphasis to be placed on the various marketing mixes to be adopted by the concerned marketer. Understanding of the consumer behaviour will enable marketers to design effective marketing strategy and programmes.
  6. 6. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 6 1.4. Consumer Modeling Model: “A physical, visual or mathematical ….. Simplified representation of a complex system.” A model is very often referred to as an abstract representation of a process or relationship. We (human beings) hold various models in our minds which allow us to make sense of the world and also help to predict the likely course of events. Simply stated models help us in the following way:  They help in the development of theories  They help to understand complex relationships  They provide the framework for discussions and research work The primary concern is to use the models to understand consumer behaviour. Consumer behaviourists as well as marketers are interested in understanding how and why certain decisions are made. The discussions have been about some of the important models of consumer behaviour, which attempts to give a comprehensive view of all those aspects of the buying situations which are deemed to be significant by their creators. Andreason (1965) proposed one of the earliest models of consumer behavior. This model is shown in Figure 2.1.The model recognizes the importance of information in the consumer decision-making process. It also emphasizes the importance of consumer attitudes although it fails to consider attitudes in relation to repeat purchase behavior.
  7. 7. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) 7 Perceived beliefs, Norms, Values of significant others. Other customer Decision-makers Information Intrinsic attributes Extrinsic attributes Price availability Advocate impersonal sources Independent impersonal sources Advocate personal sources Independent personal sources Information storage Attitudes towards sources Filtration Personality Direct experience Beliefs Wants Want strength Feelings Disposition Search Select No action Attitudes towards product, substitutes, complement Income, budget piorities, physical capacity, household capacity Ownership Other purchase decisions Hold Key Direct Flows Feedbacks Yes No Figure 1 Andreason, A.R (1965 Attitudes and Consumer Behavior: A Decision Model in New Research in Marketing (ed. l. Preston). Institute of Business and Economic Research, University of California, Berkeley, pp.1-61 Constraints
  8. 8. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 8 second model, which concentrates on the buying decision for a new product, was proposed by Nicosia (1976). This model is shown in Figure 2.2. The model concentrates on the firm's attempts to communicate with the consumer, and the consumers' predisposition to act in a certain way. These two features are referred to as Field One. The second stage involves the consumer in a search evaluation process, which is influenced by attitudes. This stage is referred to as Field Two. The actual purchase process is referred to as Field Three, and the post-purchase feedback process is referred to as Field Four. This model was criticized by commentators because it was not empirically tested (Zaltman, Pinson and Angelman, 1973), and because of the fact that many of the variables were not defined (Lunn, 1974). Perhaps, the most frequently quoted of all consumer behavior models is the Howard- Sheth model of buyer behavior, which was developed in 1969. This model is shown in Figure 1. The model is important because it highlights the importance of inputs to the consumer buying process and suggests ways in which the consumer orders these inputs before making a final decision. The Howard-Sheth model is not perfect as it does not explain all buyer behavior. It is however, a comprehensive theory of buyer behavior that has been developed as a result of empirical research (Horton, 1984). Schiffman and Kanuk (1997) mentioned that many early theories concerning consumer behavior were based on economic theory, on the notion that individuals act rationally to maximize their benefits (satisfactions) in the purchase of goods and services. A consumer is generally thought of as a person who identifies a need or desire, makes a purchase, and then disposes of the product during the three stages in the consumption process in Figure2.2 (Solomon, 1996)
  9. 9. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 9 1.5. CONCEPTS AND DIMENSIONS OF CONSUMER BEHAVIOUR Consumer behaviour is an interdisciplinary science and relatively emerged as a new field of study in the mid to late 1060s. This new discipline is borrowed heavily from concepts developed in other scientific disciplines such as applied psychology, social psychology, cultural anthropology, economics and econometrics. Therefore, it is crucial to discuss various dimensions of consumer behaviour in the context of Indian consumer. (a) Consumer Needs and Motivation: Consumer needs are the basis of all modern marketing. The key to a company‟s survival, profitability and growth in a highly competitive environment is its ability to identify and satisfy unfulfilled consumer needs Marketers do not create needs though in some instances they may make consumer more keenly aware of unfelt need. Motivation can be described as the deriving force within individuals that impels them to action. The deriving force is produced by a state of tension exists as the result of an unfilled need. Motivation is a need-induced tension which exerts a “push” on the individual to engage in behaviour that he expects, will gratify needs and thus reduce tension. Individuals strive both consciously and subconsciously to reduce this tension through behaviour that they anticipate will fulfill their needs. Consumer motivation is dynamic in nature because their wants are frequently changing. (b) Consumer Psychographics: Marketing practitioner and consumer researchers refer Psychographics as lifestyle analysis or AIO (activity, interest and opinions) research. Consumer specific psychographics researches are related to consumer personality, buying motives, interests, attitudes, beliefs and values. Services specific psychographics researches are related to product attributes such as consumer responses about products, brands or a specific consumption situation. Consumer perception: Perception is defined as the process by which an individual selects, organises and interprets stimuli into a meaningful and coherent manner. Stimuli are sensory inputs include services, packages, brand names,
  10. 10. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 10 advertisements and commercials. Sensory receptors are the human organs that receive sensory inputs. Sensation is the immediate and direct response of the sensory organs to simple stimuli. Learning and consumer involvement: Consumer learning is the process of acquiring the knowledge related to purchase and consumption information. Consumer attitudes: Attitudes are expression of inner feelings that reflects whether a person is favorably or unfavorably predisposed to some object, person or event. As an outcome of psychological process attitudes are not directly observable but must be inferred from what people say or do. (c) Demographic Factors: Demographics describe a population in terms of its size, distribution and structure. Demographics influence buying behaviour both directly and indirectly by affecting other attributes of individuals such as their personal values and decision styles. There are contradictory conclusions about the effect of age, income and gender for a particular service. Age, age-groups, education level, income, occupation etc. serves as various dimensions of demographics. In India additional factors such as religion, social denominations, caste, age, family background, regional disparities instates, linguistic difference, regional perception of class factor and the degree of impact of these factors in affecting the social status, all play crucial role in determining the social status of an individual. (d) Economic Factors: Wealth, home ownership, number of earning members in a family, household income, expenditure, rate of interest, inflation, economic conditions and investment pattern are some of the economic factors have strong influence on consumer purchase decision. (e) Communication and Consumer Behaviour: Communication is the transmission of messages from a sender to a receiver by means of signals of some sort sent through a channel. There are four basic components of all communications: a source, a destination, a medium and a message. There are two types of communication to which a consumer is exposed interpersonal communication and impersonal (or mass) communication.
  11. 11. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 11 (f) Socio-cultural Factors: Consumer in a group and consumer reference groups: A group may be defined as two or more people who interact to accomplish similar goals. Consumer relevant groups are family, friends, formal social groups, shopping groups, consumer action groups, work groups, references groups etc. Four basic functions provided by the family are relevant to consumer behaviour these include; economic well-being, emotional-support, suitable family lifestyles and family-member socialization. Sociologists and researchers have strongly favoured the concept of Family Life Cycle (FLC) - a way to classify family units into significant groups. FLC is a strategic tool for marketers to segment families in terms of a series of stages spanning the life course of a family unit. Traditional family life cycle stages are bachelorhood, honeymooners, parenthood, post parenthood and dissolution. Consumer and their social classes: Social class is defined as the division of members of a society into a hierarchy of distinct status classes so that members of each class have relatively the same status and members of all other classes have either more or less status. Social class is measured in terms of social status of its members and comparison of members of each social class with other social classes. Some of the variables of the social class are occupation, income, educational level and property ownership etc. Culture and consumer behaviour: Culture is a sum total of learned beliefs, values and customs that serves to direct the consumer behaviour of a particular society. Subculture can be thought as a distinct cultural group that exists as an identifiable segment within a larger and more complex society. (g) Consumer and Consumerism: The word consumerism has many expressions depending on who is using the term government, business, consumer groups, academicians and researchers. Consumerism is defined as a social movement of citizens and government to enhance the rights and powers of buyers in relation to seller.
  12. 12. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 12 2. BUYING PROCESS OR CONSUMER DECISION MAKING A decision is the selection of an action from two or more alternatives. In other words, in order to make a decision, there must be a choice of alternatives available. If a person has a choice between making a purchase and not making a purchase, or a choice between brands, we can say that this person is in a position to make a decision. A “no-choice” decision is commonly referred to as a “Hobson‟s choice.” Buyer decision making is an attempt to solve consumer problems. A problem refers to a discrepancy between a desired state and an ideal state which is sufficient to arouse and activate a decision process. Thus problem can be major or minor and the broader and more ambiguous a problem is, the more potential solutions are generally available. The study of buyer behaviour is the most dynamic marketing activities as the buyer rapidly change their preferences and are affected by multiple factors at a given point of time, are difficult to analyze. Therefore, it is necessary that continuous study of buying behaviour must be conducted and extended. This monitoring will make an understanding of marketing management to take effective decisions regarding service price, distribution and promotion. A marketer understands how buyer will respond to different service features, prices, advertising appeals and so on will have an enormous advantage over his adversaries. When a buyer takes a decision to buy there is no rigid rule to bind them. Sometimes the decisions are taken on spot or after evaluating various alternatives available and reassuring himself with the opinion of those who have already purchased the service. Four views of buyer decision making: Before presenting a simple model how consumers make decisions. For depicting consumer decision making it‟s important to consider several models of man. The term model of man refers to a general perspective held by a significant number of people concerning how (and why) individuals behave as they do. Following are the consumer-related models of man:-
  13. 13. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 13 (1) Economic man (Traditional view): Economics reflects a world of perfect competition and the consumer is often characterised as an economic man. The economic theory of consumer behaviour was synthesized by Alfred Marshall from the ideas of Classical Economists and the proponents of theory of „Marginal Utility.‟ Economic view explains the consumer as an economic man who buys rationally to maximize the utility (benefits) derived from a service. To behave rationally in the economic sense a consumer would have to be aware of all available service alternatives. The consumer would have to be capable of correctly ranking each alternative in terms of its benefits and disadvantages. According to leading social scientists this view is unrealistic because of three reasons (a) people are limited by their existing skills, habits and reflexes (b) people are limited by their existing values and goals (c) people are limited by the extent of their knowledge. However, consumers rarely have enough information, sufficient or sufficiently information, or even an adequate degree of involvement or motivation to make perfect decision. Consumers are living in an imperfect world where they do not maximise their decisions in terms of economic considerations such as price- quantity relationships, marginal utility or indifference curves. Indeed the consumers are often unwilling to engage in extensive decision making activities and will instead settle for a “satisfactory” decision, one that is “good enough.” For this reason, the economic model is often rejected as too idealistic and simplistic. The economists described man as a rational buyer and viewed the market as a collection of homogenous buyers. (2) Passive man: This model is quite opposite to the economic model of man. The passive view depicts the consumer basically submissive to the self-serving interest and promotional efforts of marketers. Consumers are perceived as impulsive and irrational purchasers, ready to yield to the arms and aims of marketers. At least to some degree the passive model of the consumer was subscribed by the hard deriving salesman who is trained to manipulate customer. The passive man view fails to recognize that the consumer plays an equal (if not dominant) role in many buying situations by seeking information about service alternatives and selecting the service that appears to offer greatest satisfaction.
  14. 14. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 14 (3) Cognitive man: According to this view consumer is defined as a thinking problem solver. Within this framework consumers are frequently depicted as either receptive to or actively seeking services that fulfill their needs and enrich their lives. The cognitive man focuses on the process by which consumers seek and evaluate information about the services. There are six types of consumer perceived risks (functional risk, economic risk, physical risk, social risk, psychological risk and time risk) which a consumer use to handle such as collecting information about alternatives, patronizing specific agents, brand loyalty etc. These risks are key components of cognitive view and consumers are viewed as information-processing systems. Consumer may use a preference formation strategy that is “other-based” in which they allow another person probably a trusted person or an expert to establish preferences to them. (4) Emotional man: Marketers prefer to think of customer in terms of either economic or passive models. Emotional man is also a reality of each of us because of deeply rooted feeling and emotions: joy, fear, love, hope, fantasy, sadness etc. These emotions have an impact on purchases and possessions. Such feelings or emotions are likely to be highly involved for making a purchase decisions. When a consumer makes any emotional purchase.
  15. 15. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 15 2.1 Models of consumerbehaviour  The Economic Model  Learning Model  Psychological Model  The Sociological Model  Howard-Sheth Model (1969)  McNeals’ Basic Model of Consumer Behavior(1973)  The Engel-Kollat-Blackwell (EKB) Model (1960)  Nicosia Model(1976)  Solomon Model of comparison process (1996)  Theory of Innovation Diffusion Rogers Model (1995)  Diffusion of Innovation Theory in Information System  Theory of Reasoned Action (TRA) (1975)  The Theory of Planned Behaviour (TPB)  Unified Theory of Use and Acceptance of Technology  Technology Acceptance Model (TAM)(1989)  Technology Acceptance Model 2  Bettman’s Information Processing Model of Consumer Choice  Sheth-Newman Gross Model of Consumption Values  Model of Travel-Buying Behavior Mathieson and Wall  Stimulus-Response Model of Buyer Behavior  Model of Consumer Decision-Making Framework
  16. 16. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 16 2.2. VARIOUS MODELS OF CONSUMER BEHAVIOUR 2.2.1 Nicosia Model This model focuses on the relationship between the firm and its potential consumers. The firm communicates with consumers through its marketing messages (advertising), and the consumers react to these messages by purchasing response. Looking to the model we will find that the firm and the consumer are connected with each other, the firm tries to influence the consumer and the consumer is influencing the firm by his decision. Field 1 Attitude Field 2: Search And evaluation Of mean/end(s) Experience relation(s) (Pre action field) Motivation Field 4: Feedback Field 3: Act of Purchase Purchasing Behavior Figure2. Nicosia Model of Consumer Decision Processes Source: Nicosia, (1976). Message Exposure Subfield 1 Firms Attribute Subfield 2 Consumers Attributes (Especially Predisposition Search and evaluation Decision (Action) Consumption
  17. 17. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 17 The Nicosia model is divided into four major fields: Field 1: The consumer attitude based on the firms’ messages. The first field is divided into two subfields. The first subfield deals with the firm’s marketing environment and communication efforts that affect consumer attitudes, the competitive environment, and characteristics of target market. Subfield two specifies the consumer characteristics e.g., experience, personality, and how he perceives the promotional idea toward the product in this stage the consumer forms his attitude toward the firm’s product based on his interpretation of the message. Field 2: search and evaluation The consumer will start to search for other firm’s brand and evaluate the firm’s brand in comparison with alternate brands. In this case the firm motivates the consumer to purchase its brands. Field 3: The act of the purchase The result of motivation will arise by convincing the consumer to purchase the firm products from a specific retailer. Field 4: Feed back This model analyses the feedback of both the firm and the consumer after purchasing the product. The firm will benefit from its sales data as a feedback, and the consumer will use his experience with the product affects the individuals attitude and predisposition’s concerning future messages from the firm. The Nicosia model offers no detail explanation of the internal factors, which may affect the personality of the consumer, and how the consumer develops his attitude toward the product. For example, the consumer may find the firm’s message very interesting, but virtually he cannot buy the firm’s brand because it contains something prohibited according to his beliefs. Apparently it is very essential to include such factors in the model, which give more interpretation about the attributes affecting the decision process.
  18. 18. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 18 2.2.2 Howard – Sheth model This model suggests three levels of decision making: 1. The first level describes the extensive problem solving. At this level the consumer does not have any basic information or knowledge about the brand and he does not have any preferences for any product. In this situation, the consumer will seek information about all the different brands in the market before purchasing. 2. The second level is limited problem solving. This situation exists for consumers who have little knowledge about the market, or partial knowledge about what they want to purchase. In order to arrive at a brand preference some comparative brand information is sought. 3. The third level is a habitual response behavior. In this level the consumer knows very well about the different brands and he can differentiate between the different characteristics of each product, and he already decides to purchase a particular product. According to the Howard-Sheth model there are four major sets of variables; namely: Inputs. These input variables consist of three distinct types of stimuli (information sources) in the consumer’s environment. The marketer in the form of product or brand information furnishes physical brand characteristics (significative stimuli) and verbal or visual product characteristics (symbolic stimuli). The third type is provided by the consumer’s social environment (family, reference group, and social class). All three types of stimuli provide inputs concerning the product class or specific brands to the specific consumer.
  19. 19. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 19 Inputs Perceptual Constructs Learning Constructs Outputs Stimuli display Figure 3 A Simplified Description of the Theory of Buyer Behavior Source: Howard, and Sheth,Pp32 (1969) Perceptual and Learning Constructs, The central part of the model deals with the psychological variables involved when the consumer is contemplating a decision. Some of the variables are perceptual in nature, and are concerned with how the consumer receives and understands the information from the input stimuli and other parts of the model. For example, stimulus ambiguity happened when the consumer does not understand the message from the environment. Perceptual bias occurs if the consumer distorts the information received so that it fits his or her established needs or experience. Significative a. Quality b. Price c. Distinctive d. Service e. Availability Symbolic a. Quality b. Price c. Distinctive d. Service e. Availability Social a. Family b. Reference groups c. Social class Purchase Intention Attitude Brand Comprehe n- sion Attention Overt search Stimulus ambiguity Attention Percept- ual bias Confidence Attitude Motives Choice Criteria Brand Compre- hension Intention
  20. 20. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 20 Learning constructs category, consumers’ goals, information about brands, criteria for evaluation alternatives, preferences and buying intentions are all included. The proposed interaction In between the different variables in the perceptual and learning constructs and other sets give the model its distinctive advantage. Outputs The outputs are the results of the perceptual and learning variables and how the consumers will response to these variables (attention, brand comprehension, attitudes, and intention). Exogenous(External) variables Exogenous variables are not directly part of the decision-making process. However, some relevant exogenous variables include the importance of the purchase, consumer personality traits, religion, and time pressure. The decision-making process, which Howard-Sheth Model tries to explain, takes place at three Inputs stages: Significance, Symbolic and Social stimuli. In both significative and symbolic stimuli, the model emphasizes on material aspects such as price and quality. These stimuli are not applicable in every society. While in social stimuli the model does not mention the basis of decision-making in this stimulus, such as what influence the family decision? This may differ from one society to another. Finally, no direct relation was drawn on the role of religion in influencing the consumer’s decision-making processes. Religion was considered as external factor with no real influence on consumer, which give the model obvious weakness in anticipation the consumer decision.
  21. 21. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 21 2.2.3 Engel – kollat- Model This model was created to describe the increasing, fast-growing body of knowledge concerning consumer behavior. This model, like in other models, has gone through many revisions to improve its descriptive ability of the basic relationships between components and sub-components, this model consists also of four stages; First stage: decision-process stages The central focus of the model is on five basic decision-process stages: Problem recognition, search for alternatives, alternate evaluation (during which beliefs may lead to the formation of attitudes, which in turn may result in a purchase intention) purchase, and outcomes. But it is not necessary for every consumer to go through all these stages; it depends on whether it is an extended or a routine problem-solving behavior. Second stage: Information input At this stage the consumer gets information from marketing and non-marketing sources, which also influence the problem recognition stage of the decision-making process. If the consumer still does not arrive to a specific decision, the search for external information will be activated in order to arrive to a choice or in some cases if the consumer experience dissonance because the selected alternative is less satisfactory than expected.
  22. 22. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 22 Figure 4 .The Engel-Kollat-Blackwell Model of Consumer Behavior. Source: Engel , Blackwell, and Miniard,(1995) page No 95 Third stage: information processing This stage consists of the consumer’s exposure, attention, perception, acceptance, and retention of incoming information. The consumer must first be exposed to the message, allocate space for this information, interpret the stimuli, and retain the message by transferring the input to long-term memory. Stimuli: Marketer- Dominated, other Exposure External search Attention Comprehension Perception Yielding/ Acceptance Retention Dissatisfaction Satisfaction M E M O R Y Problem Recognition Search Internal search Outcomes Purchase Alternative evaluation Individual Characteristic s: Motives Values Lifestyle Personality Beliefs Attitude Intention Social Influences : Culture Reference group Family Situational Influences Input Information Processing Decision Process Variables Influencing Precision Process
  23. 23. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 23 Fourth stage: variables influencing the decision process This stage consists of individual and environmental influences that affect all five stages of the decision process. Individual characteristics include motives, values, lifestyle, and personality; the social influences are culture, reference groups, and family. Situational influences, such as a consumer’s financial condition, also influence the decision process. This model incorporates many items, which influence consumer decision-making such as values, lifestyle, personality and culture. The model did not show what factors shape these items, and why different types of personality can produce different decision-making? How will we apply these values to cope with different personalities? Religion can explain some behavioral characteristics of the consumer, and this will lead to better understanding of the model and will give more comprehensive view on decision-making.
  24. 24. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 24 2.2.4 Bettman’s Information Processing Model of Consumer Choice Bettman (1979) in his model describes the consumer as possessing a limited capacity for processing information. He implicate that the consumers rarely analyze the complex alternatives in decision making and apply very simple strategy. In this model there are seven major stages. Stage No. 1: Processing capacity In this step he assumes that the consumer has limited capacity for processing information, consumers are not interested in complex computations and extensive information processing. To deal with this problem, consumers are likely to select choice strategies that make product selection an easy process. Stage No. 2: Motivation Motivation is located in the center of Bettman model, which influence both the direction and the intensity of consumer choice for more information in deciding
  25. 25. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 25 Figure 5. the Bettman Information-Processing Model of Consumer Choice Source: Bettman. (1979). Pp 402 Between the alternatives Motivation is provided with hierarchy of goals’ mechanism that provides a series of different sub-goals to simplify the choice selection. This mechanism suggests that the consumers own experience in a specific area of market and he doesn’t need to go through the same hierarchy every time to arrive at a decision, which make this mechanism serves as an organizer for consumer efforts in making a choice. No concern was given on religious motives, and how religion may motivate the consumer in his decision. Most of the general theories of motivation such as Maslow’s hierarchy of needs (1970) emphasizes self-achievement, the need for power, and the need for affiliation. Motivation Goal hierarchy Processing capacity Attention Information acquisition and evaluation Decision Processes Consumption and learning processes Perceptual encoding Perceptual Scanner and interrupt mechanisms interrupt interpretation and response Memory search External search Scanner and interrupt mechanisms Interrupt interpretation and response Scanner and interrupt mechanisms Interrupt interpretation and response Scanner and interrupt mechanisms Interrupt interpretation and response
  26. 26. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 26 Stage No. 3: Attention and perceptual encoding. The component of this step is quite related to the consumer's goal hierarchy. There are two types of attention; the first type is voluntary attention, which is a conscious allocation of processing capacity to current goals. The second is involuntary attention, which is automatic response to disruptive events (e.g., newly acquired complex information). Both different types of attention influence how individuals proceed in reaching goals and making choices. The perceptual encoding accounts for the different steps that the consumer needs to perceive the stimuli and whether he needs more information. Stage No. 4: Information acquisition and evaluation If the consumer feels that the present information is inadequate, he will start to look for more information from external sources. Newly acquired information is evaluated and its suitability or usefulness is assessed. The consumer continues to acquire additional information until all relevant information has been secured, or until he finds that acquiring additional information is more costly in terms of time and money. Stage No. 5: Memory In this component the consumer keeps all the information he collects, and it will be the first place to search when he need to make a choice. If this informations is not sufficient, no doubt he will start looking again for external sources. Stage No. 6: Decision Process This step in Bettman’s model indicates that different types of choices are normally made associated with other factors, which may occur during the decision process. Specifically, this component deals with the application of heuristics or rules of thumb, which are applied in the selection and evaluation of specific brand. These specific heuristics a consumer uses are influenced by both individual factors (e.g., personality differences) and situational factors (e.g., urgency of the decision); thus it is unlikely that the same decision by the same consumer will apply in different situation or other consumer in the same situation.
  27. 27. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 27 Stage No. 7: Consumption and Learning Process In this stage, the model discusses the future results after the purchase is done. The consumer in this step will gain experience after evaluating the alternative. This experience provides the consumer with information to be applied to future choice situation. Bettman in his model emphasize on the information processing and the capacity of the consumer to analyze this information for decision making, but no explanation was given about the criteria by which the consumer accepts or refuses to process some specific information.
  28. 28. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 28 2.2.5 Sheth-Newman Gross Model of Consumption Values According to this model, there are five consumption values influencing consumer choice behavior. These are functional, social, conditional, emotional, and epistemic values. Any or all of the five consumption values may influence the decision. Various disciplines (including economics, sociology, several branches of psychology, marketing and consumer behavior) have contributed theories and research findings relevant to these values, (Sheth et al. 1991). Each consumption value in the theory is consistent with various components of models advanced by Maslow (1970), Katona (1971), Katz (1960), and Hanna (1980). Five consumption values form the core of the model: Figure 6. The five values influencing Consumer Choice Behavior Source: Sheth, Newman, and Gross (1991) Pp159-170 The first value: Functional value To Sheth et al. (1991) the functional value of an alternative is defined as: "The perceived utility acquired from an alternative for functional, utilitarian, or physical performance. An alternative acquires functional value through the possession of salient functional, utilitarian, or physical attributes. Functional value is measured on a profile of choice attributes." ConsumerChoice Behavior Functional Value Conditional Value Social Value Emotional Value Epistemic Value
  29. 29. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 29 Traditionally, functional value is presumed to be the primary driver of consumer choice. This assumption underlies economic utility theory advanced by Marshall (1890) and Stigler (1950) and popularly expressed in terms of "rational economic man." An alternative’s functional value may be derived from its characteristics or attributes, (Ferber, 1973) such as reliability, durability, and price. For example, the decision to purchase a particular automobile may be based on fuel economy and maintenance record. By identifying the dominant function of a product (i.e., what benefits it provides), marketers can emphasize these benefits in their communication and packaging. Advertisements relevant to the function prompt more favorable thoughts about what is being marketed and can result in a heightened preferences for both the ads and the product, (Solomon 1996;160). Katz (1960) developed the functional theory of attitudes. He identifies four attitudes based on the functional values: 1) Utilitarian function. The utilitarian function is related to the basic principles of reward and punishment. We develop some of our attitude toward products simply based on whether these products provide pleasure or pain. 2) Value-expressive function. Attitude that performs a value-expressive function expresses the consumers’ central values or self-concept. A person forms a product attitude not because of its objective benefits, but because of what the product says about him or her as a person. 3) Ego-defensive function. Attitude formed to protect the person, either from external threats or internal feelings, perform an ego-defensive function. Example of this function is deodorant campaigns that stress the dire, embarrassing consequences of being caught with underarm odor in public. 4) Knowledge function. Some attitude is formed as a result of a need for order, structure, or meaning. This need is often present when a person is in an ambiguous situation or is confronted with a new product.
  30. 30. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 30 The second value: Social value Sheth et al. (1991;161) defined social value of an alternative as: "The perceived utility acquired from an alternative association with one or more specific social groups. An alternative acquires social value through association with positively or negatively stereotyped demographic, socioeconomic, and cultural-ethnic groups. Social value is measured on a profile choice imagery." Social imagery refers to all relevant primary and secondary reference groups likely to be supportive of the product consumption. Consumers acquire positive or negative stereotypes based on their association with varied demographic (age, sex, religion), socioeconomic (income, occupation), cultural/ethnic (race, lifestyle), or political, ideological segments of society. Choices involving highly visible products (e.g., clothing, jewelry) and good service to be shared with others (e.g., gifts, products used in entertaining) are often driven by social values. For example, a particular make of automobile is being chosen more for the social image evoked than for its functional performance. Even products generally thought to be functional or utilitarian, are frequently selected based on their social values. The third value: Emotional value Sheth et al. (1991; 161) defined emotional value of an alternative as: "The perceived utility acquired from an alternative’s capacity to arouse feelings or affective states. An alternative acquires emotional value when associated with specific feelings or when precipitating those feelings. Emotional values are measured on a profile of feelings associated with the alternative."
  31. 31. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 31 Consumption emotion refers to the set of emotional responses elicited specifically during product usage or consumption experience, as described either by the distinctive categories of emotional experience and expression (e.g., joy, anger, and fear) or by the structural dimensions underlying emotional categories such as pleasantness/ unpleasantness, relaxation/action, or calmness/excitement. Goods and services are frequently associated with emotional responses (e.g. the fear aroused while viewing horror movie). Emotional value is often associated with aesthetic alternatives (e.g. religion, causes). However, more tangible and seemingly utilitarian products also have emotional values. For example, some foods arouse feeling of comfort through their association with childhood experiences, and consumers are sometimes said to have "love affairs" with their cars. A number of different attempts have been made to identify the various emotions that people experience. Izard (1977) develops the taxonomy of affective experience approach that describes the basic emotion that people feel. He measures emotions using ten fundamental categories: interest, joy, surprise, sadness, anger, disgust, contempt, fear, shame, and guilt. This approach has been used extensively by consumer researchers, for example, Westbrook and Oliver (1991). The fourth value: Epistemic value Sheth et al. (1991 ;162) defined epistemic value as: "The perceived utility acquired from an alternatives capacity to arouse curiosity, provide novelty, and/or satisfy a desire for knowledge. An alternative acquires epistemic value by items referring to curiosity, novelty, and knowledge." Epistemic issues refer to reasons that would justify the perceived satisfaction of curiosity, knowledge, and exploratory needs offered by the product as a change of pace (something new, different). Entirely new experience certainly provides epistemic value. However, an alternative that provides a simple change of pace can also be imbued with epistemic value. The alternative may be chosen because the consumer is bored or satiated with his or her current brand (as in trying a new type of food), is curious (as in visiting a new shopping complex), or has a desire to learn (as in experiencing another culture).
  32. 32. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 32 The concept of epistemic values has been influenced by theory and by several important areas of research. Exploratory, novelty seeking, and variety seeking motives have been suggested to active product search, trial, and switching behavior, (Howard and Sheth 1969). One of the most significant contributors to the study of the optimal stimulation and arousal has been Berlyne (1970), who contends that individuals are driven to maintain an optimal or intermediate level of stimulation. Finally, Hirschman (1980) has advanced innovativeness, or a consumer’ propensity to adopt new products. The Fifth value: Conditional value Sheth et al. (1991;162) defined the conditional value as: "The perceived utility acquired by an alternative is the result of the specific situation or set of circumstances facing the choice maker. An alternative acquires conditional value in the presence of antecedent physical or social contingencies that enhance its functional or social value. Conditional value is measured on a profile of choice contingencies." An alternative’s utility will often depend on the situation. For example, some products only have seasonal value (e.g., greeting cards), some are associated with once in a life events (e.g., wedding dress), and some are used only in emergencies (e.g., hospital services). Several areas of inquiry have also influenced conditional value. Based on the concept of stimulus dynamism advanced by Hall (1963), Howard (1969) recognized the importance of learning that takes place as a result of experience with a given situation. Howard and Sheth (1969) then extended Howard’s earlier work by defining the construct inhibitors as noninternalized forces that impede buyers’ preferences. The concept of inhibitors was more formally developed by Sheth (1974) in his model of attitude-behavior relationship as anticipated situations and unexpected events. Recognizing that behavior cannot be accurately predicted based on attitude or intention alone, a number of researchers during the 1970s investigated the predictive ability of situational factors (e.g., Sheth 1974).
  33. 33. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 33 The five consumption values identified by the theory make differential contributions in specific choice contexts. For example, a consumer may decide to purchase coins as an inflation hedge (functional value), and also realize a sense of security (emotional value) from the investment. Social, epistemic, and conditional values have little influence. Of course, a choice may be influenced positively by all five consumption values For example, to a first-time home buyer, the purchase of a home might provide functional value (the home contains more space than the present apartment), social values (friends are also buying homes), emotional values (the consumer feels secure in owning a home), epistemic value (the novelty of purchasing a home is enjoyable), and conditional value (starting a family).
  34. 34. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 34 2.2.6 Solomon Model of comparison process Figure 7. Model of comparison process Source: Solomon (1996) Pp33 Figure 2.2.7 explains some of the issus that are addressed during each stage of the consumption process. The ‘exchange’, in which two or more organizations or people give and receive something of value, is an integral part of marketing. He also suggested that consumer behavior involves many different actors. The purchaser and user of a product might not be the same person. People may also act as influences on the buying processes. Organizations can also be involved in the buying process. Much of marketing activity, they suggest, concentrates on adapting product offerings to particular circumstances of target segment needs and wants. It is also common to stimulate an already existing want through advertising and sales promotion, rather than creating wants. The definitions and models, which have been presented so far, have been from general marketing theory. Tourism is, by its very nature, a service rather than a product, which may have a considerable effect on consumer behavior. How does a consumer decide that he/she needs a product? What are the best sources of information to learn more about alternative choices? How are consumer attitudes toward products formed and/or changed? What cues do consumers use to infer which products are superior to others? CONSUMER'S PERSPECTIVE MARKETER'S PERSPECTIVE Is acquiring a product a stressful or pleasant experience? What does the purchase say about the consumer? How do situational factors, such as time pressure or store displays, affect the consumer’s purchase decision? Does the product provide pleasure or perform its intended function? How is the product eventually disposed of, and what are the environmental consequences of this act? What determines whether a consumer will be satisfied with a product and whether he/she will buy it again? Does this person tell others about his/her experiences with the product and affect their purchase decisions? PREPURCHASE ISSUES PURCHASE ISSUES POSTPURCHASE ISSUES
  35. 35. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 35 3. TECHNOLOGY ADOPTION MODEL 3.2.1 Theory of Innovation Diffusion Rogers Model (1995) Innovation Diffusion: Implementation Success or Technology Adoption is depends the Compatibility of Technology, Complexity of Technology, Relative Advantage (Perceived Need for Technology) system (Rogers, 1995). Individuals are seen as possessing different degrees of willingness to adopt innovations and thus it is generally observed that the portion of the population adopting an innovation is approximately normally distributed over time (Rogers, 1995). Breaking this normal distribution into segments leads to the segregation of individuals into the following five categories of individual innovativeness (from earliest to latest adopters): innovators (Figure 3), early adopters, early majority, late majority, laggards (Rogers, 1995). Members of each category typically possess certain distinguishing characteristics as shown below: 1. Innovators - venturesome, educated, multiple info sources 2. Early adopters - social leaders, popular, educated 3. Early majority - deliberate, many informal social contacts 4. Late majority - sceptical, traditional, lower socio-economic status 5. Laggards - neighbours and friends are main info sources, fear of debt Figure 8. : Diffusion of Innovation Source: Roger 1995
  36. 36. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 36 Diffusion of Innovation Theory in Information System Diffusion model The model developed by Frank Bass (1969) and describes the process of how the new product gets adopted as an interaction between users and prospects. It has been described as one of the most famous empirical generalizations in marketing, along with the Dirichlet Model of repeat buying and brand choice (Mark et al 1995). The model is widely used in forecasting especially product forecasting and technology forecasting. Mathematically, the basic Bass diffusion is a Riccati with constant coefficients. This model has been widely influential in marketing and management science. In 2004 it was selected as one of the ten most frequently cited papers in the 50-year history of Management Science. It was ranked number five, and the only marketing paper in the list. It was subsequently reprinted in the December 2004 issue of Management Science. (Moore and Benbasat, 1991), working in an Information System context, expanded upon the five factors impacting the adoption of innovations presented by Rogers, generating eight factors (voluntariness, relative advantage, compatibility, image, ease of use, result demonstrability, visibility, and trialability) that impact the adoption of Information Technology. Scales used to operationalize these factors were also validated in the study.
  37. 37. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 37 Figure 9: Bass diffusion model of new adopters Since the early applications of DOI to IS research the theory has been applied and adapted in numerous ways. Research has, however, consistently found that technical compatibility, technical complexity, and relative advantage (perceived need) are important antecedents to the adoption of innovations see figure no. 4 (Bradford and Florin, 2003; Crum et. al., 1996) leading to the generalized model. Diffusion models only try to predict the type of customers only. But does not deal with detailed the process of adoption. Hence does not focus more on the Consumer Behaviour part of technology adoption.
  38. 38. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 38 3.2.3 Theory of Reasoned Action (TRA) (1975) The Theory of Reasoned Action (TRA) which was formulated in 1975 by Fishbein and Ajzen has been used extensively in marketing research. Figure no.5presents a diagrammatic model of the theory. TRA has been applied to explain the behaviour beyond the acceptance of technology and includes four general concepts: behavioural attitudes, subjective norms, intention to use and actual use. It argues that individuals evaluate the consequences of a particular behaviour and create intentions to act that are consistent with their evaluations. More specifically, TRA states that individuals' behaviour can be predicted from their intentions, which can be predicted from their attitudes and subjective norms. Following the chain of prediction further back, attitudes can be predicted from an individual's beliefs about the consequences of the behaviour. Subjective norms can be predicted by knowing how significant other individuals think the behaviour should or should not be done. Figure 10 :Theory of Reasoned Action (TRA) A particularly helpful aspect of TRA from a technology perspective is its assertion that any other factors that influence behavior do so only indirectly by influencing attitude and subjective norms. Such variables would include, amongst others things, the system design characteristics, user characteristics (including cognitive styles and other personality variables) and task characteristics. Hence, TRA is quite appropriate in the context of predicting the behavior of using multimedia technology. Although TRA, is a very general theory and as such does not specify what specific beliefs would be pertinent in particular situations.
  39. 39. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 39 3.2.4 The Theory of Planned Behavior (TPB) In exploring consumer's usage behavior, researchers adopt behaviour theories from psychology and marketing. It is in this context that the TPB was constructed. The TPB was proposed as an extension to the TRA mentioned earlier, by Ajzen in 1991. The TPB sought to account for conditions where individuals do not have a complete control over their behavior. When applied to the acceptance of information technology systems or services, the model contains five concepts. As in TRA, it includes behavioral attitudes, subjective norms, intention to use and actual use. However, this theory interprets behavioral control as a perceived construct. Perceived behavioral control covers both the intention to use and the actual usage. Actual usage is in turn a weighted function of intention to use and perceived behavioral control. Under this arrangement control aspects of the observation is introduced into the model. This makes the TPB more functional in its application. Researchers have used the TPB widely to model the acceptance of a variety of new information technologies in businesses as well as to predict levels of usage. Figure 11 :The Theory Planned Behaviour
  40. 40. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 40 3.2.5 Unified Theory of Use and Acceptance of Technology A recent adoption theory formulated (Venkatesh et al. 2003) Unified Theory of Acceptance and Use of Technology (UTUAT). UTUAT includes four core elements: performance expectancy, effort expectancy, social influence and facilitating conditions. These elements are direct determinants of information systems usage intention and behaviour. In addition the model proposed that gender, age, experience, and voluntariness of use mediate the impact of the four core elements on usage intention and behaviour. Figure 12 :Unified Theory of Use and Acceptance of Technology
  41. 41. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 41 The model has excellent explanatory power, and is able to explain up to 69 percent of the variance in usage intention (Venkatesh et al., 2003). UTUAT has been widely employed in studies of various IT innovations. Zhou et al. (2010) used UTUAT to study Tablet Pc adoption, and found that performance expectancy, social influence and facilitating conditions are direct predictors of user adoption, along with the extra dimension of task technology fit. (Gupta,et. al., 2008) found that performance expectancy, effort expectancy, social influence and facilitating conditions all positively influence the use of the ICT. In addition UTUAT has been used in studying users’ adoption of mobile wallets (Shin, 2009), health information technology (Kijsanayotin et al., 2009) and intentions to continue using web-based learning (Chiu and Wang, 2008).
  42. 42. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 42 3.3.1 Technology Acceptance Model (TAM)(1989) The Technology Acceptance Model (TAM) (Davis, 1989; Davis,et. al., 1989) examines the adoption of technology based on the perceived usefulness and ease of use of the technology by the consumer. TAM theory applies its fundamentals to the adoptions of technology, introducing variables like Perceived Usefulness (PU) and Perceived Ease Of Use (PEOU) and removing Subjective Norms. The objective of TAM is to provide an “explanation of the determinants of computer acceptance that is general, capable of explaining usage behaviour across a broad range of systems or end-user computing technologies and user populations, while at the same time being both parsimonious and theoretically justified” (David, et. al.,1989,). Through TAM,(Davis,1989) posits that an individual’s behavioural intention to adopt and use a particular technology is determined by the individual’s attitude toward it. Two factors contribute to the development of the Attitude (A): Perceived Usefulness (PU) and Perceived Ease of Use (PEOU). Will this technology enhance the individual’s performance professionally or socially? Will the use of this technology be effortless? Each of these questions is a descriptor for the factors. The two perceptions around usefulness (utility) and use are cognitions around the innovation of technology. Usefulness is the cognitive evaluation of the individual regarding the utility provided by the innovation. Use is an indicator of the cognitive effort necessary to properly deploy the technology. The usefulness variable is heavily influenced by the ease of use. Figure 13 :The Technology Accptance Model
  43. 43. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 43 All other variables being equal, the easier the technology is perceived to be to use, the useful it is perceived to be. A key strength of Technology Acceptance Model (TAM) is its predictive power. It has been empirically verified as a tool for predicting technology use (Szajna, 1996) and emerged as the dominant model in the literature (Venkatesh, 2000; VenkateshandDavis, 1996; Szajna, 1994; Davis, 1989). Its capability has been demonstrated to explain between 17% to 33% of the variance in attitude and usage intentions (Thompson, et. al., 1991; Davis, et. al., 1989). The variables introduced in this model, perceived ease of use and perceived usefulness, continue to collect empirical support and momentum in predicted technology acceptance behavior (Venkatesh, 2000: Venkatesh and Davis, 1996). As its popularity is growing, Technology Acceptance Model (TAM) is being used outside of the Information System research within the marketing discipline within consumer research around online retail shopping (O’Cass and French, 2003;Childers, et. al., 2001), buying intentions on the web (Gentry and Calantone, 2002) and understanding technology-based self-service usage (Dabholkar and Bagozzi, 2002). Size as well as the enterprise’s type of activity has an influenced on the adoption of technology (Filiatrault and Huy 2006) Technology Acceptance Model (TAM) is a fairly efficient model with a potential to help in understanding technology acceptance pre-service teachers (Teo, 2010). All the independent variables (perceived usefulness, subjective norm, and perceived ease of use) predict the attitude technology Acceptance (Shittu, et. al, 2011).
  44. 44. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 44 3.3.2 Technology Acceptance Model 2 The original TAM model extended to explain perceived usefulness and usage intentions in terms of social influence and cognitive instrumental processes (Venkatesh and Davis 2000). As mentioned earlier, the original TAM model was based on Aizen’s TRA model but did not include the subjective norms construct. Since TAM’s introduction, consequent studies have built on TAM’s promising robustness, trying to compare TAM to its origins and with other models used in explaining technology acceptance such as diffusion of innovation which is discussed in section 13. Previous studies agreed upon the need for adding other variables to serve as determinants of the major construct since the original model lacked such determinants for Perceived Usefulness (PU) & Perceived Ease of Use (PEOU). TAM2, an extension of TAM, includes additional key determinants of perceived usefulness and usage intention constructs which are meant to explain the changes in technology acceptance over time as individuals gain experience in using the targeted technology. Figure 9 shows the proposed model referred to as TAM2. The new model incorporates additional theoretical constructs covering social influence processes (subjective norm, voluntariness, and image) and cognitive instrumental processes (job relevance, output quality, result demonstrability, and perceived ease of use). Figure 14:
  45. 45. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 45 Figure 14:Technology Acceptance Model 2 (TAM2) Venkateshand Davis explained the role of social influences in computer usage contexts. According to them, TAM2 theorizes that the subjective norms direct effect on intention over Perceived Usefulness (PU) & Perceived Ease Of Use (PEOU) will occur in mandatory system usage settings. The model posits voluntariness as a moderating variable to distinguish between mandatory versus voluntary compliance with organizational settings. Nevertheless, subjective norms can influence intention through Perceived Usefulness (PU) or what is called internalization.
  46. 46. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 46 3.3.3 Technology Readiness Index(TRI) Technology readiness (TR) refers to "people's propensity to embrace and use new technologies to accomplish goals in home life and at work" (Parasuraman, 2000, p. 308). It combines the positive and negative technology-related beliefs. These beliefs are assumed to vary among individuals. Collectively, these coexisting beliefs determine a person's predisposition to interact with new technology (Parasuramanand Colby 2001). Further, the findings show that these beliefs can be categorized into four dimensions: optimism, innovativeness, discomfort, and insecurity (Parasuraman, 2000).  Optimism is defined as "a positive view of technology and a belief that it [technology] offers people increased control, flexibility, and efficiency in their lives" (Parasuramanand Colby, 2001, p. 34). It generally captures positive feelings about technology.  Innovativeness is defined as "a tendency to be a technology pioneer and thought leader" (Parasuramanand Colby 2001, p. 36). This dimension generally measures to what degree individuals perceive themselves as being at the forefront of technology adoption.  Discomfort is defined as "a perceived lack of control over technology and a feeling of being overwhelmed by it" (Parasuraman and Colby 2001, p. 41). This dimension generally measures the fear and concerns people experience when confronted with technology.  Insecurity is defined as a "distrust of technology and scepticism about its ability to work properly" (Parasuraman and Colby, 2001, p. 44). This dimension focuses on concerns people may have in face of technology-based transactions.
  47. 47. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 47 Optimism and innovativeness are the drivers of technology readiness. High score of these dimensions will increase overall technology readiness.Discomfort and insecurity, on the other hand side, are inhibitors of technology readiness. Thus, a high score of these dimensions will reduce overall technology readiness (Parasuraman, 2000). Results show that the four dimensions are fairly independent, each of them making a unique contribution to an individual's technology readiness (Parasuraman and Colby, 2001). Source: Parasuraman (2000, p. 34),Figure 15: Technology readiness Index TRI emerged through an extensive multiphase research program in the United States. In the final 36-item scale the four dimensions demonstrated, for purposes of group analysis, a sound reliability with Cronbach's alpha ranging from .74 to .81. Further, Parasuraman (2000) found a positive relationship between TR scores and technology- related behaviours (i.e., ownership of new technology, use, and desirability to use in the future). A replication in Great Britain has further strengthened the soundness of the TRI. (Tsikriktsis 2004) extracted the same four-factor structure with Cronbach's alpha ranging from .74 to .88. Both studies obtained large national cross sectional samples by conducting random based telephone interviews: A total of 1000 adults (over 18 years) participated in the United States, and 400 adults (over 16 years) participated in Great Britain (Parasuraman, 2000; Tsikriktsis, 2004).
  48. 48. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 48 3.3.4 Technology Acceptance Model 3 A third iteration of the TAM model (TAM 3) was created, combining TAM 2 and the determinants based on perceived ease of use by incorporating the findings of previous research in order to improve acceptance rates of new technologies. The TAM 3 model contains both factors influencing perceived ease of use (computer self-efficacy, computer anxiety, computer playfulness, perceptions of external control, perceived enjoyment and objective usability) and perceived usefulness (perceived ease of use, subjective norm, image, and result demonstrability). The goal of the revised model is to produce practical guidance and suggestions to practitioners (Venkatesh and Bala, 2008). TAM 3 longitudinal testing by Venkatesh and Bala (2008)identifies many new relationships between variables. Specifically, perceived ease of use, subjective norm, image, and result demonstrability are significant predictors of perceived usefulness at all time periods. When participants experience increasing output quality, job relevance has a strong positive effect on perceived usefulness. Additionally, with increasing experience, the subjective norm has less effect than perceived usefulness. The anchors (computer self-efficacy, computer anxiety, computer playfulness, and perceptions of external control) are significant predictors of perceived ease of use at all points in time and adjustments of perceived enjoyment and objective usability become significant at later times to perceived ease of use. Finally, perceived usefulness is the strongest predictor of technology acceptance and use at all times (Venkatesh and Bala, 2008). While research efforts to develop TAM and TAM 2 were interested in identifying relationships between variables, TAM 3 focuses on producing actionable points for practioners. Researchers divide their advice into two stages: pre-implementation interventions and post-implementation (Venkatesh and Bala, 2008). The pre-implementation stage occurs during the development and deployment of a technology. Venkatesh and Bala (2008) suggest that managers/administrators encourage user participation by allowing the employees to help pick out new technology. Also, good managerial support of the new system is needed. Lastly, they suggest managers/administrators implement an incentive alignment, which entails matching the individual’s perception of the new technology with his/her job requirements and value system (Venkatesh and Bala, 2008). The TAM 3 Model is shown in figure no.10.
  49. 49. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 49 Figure 16: Technology Acceptance Model 3
  50. 50. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 50 As per the TAM 3 model, it is suggested that the determinants of perceived ease of use will not influence perceived usefulness. The determinants of perceived ease of use suggested by Venkatesh (2000) are primarily individual differences variables and general beliefs about computers and computer use. These variables are grouped into three categories: control beliefs, intrinsic motivation, and emotion. Perceived usefulness is an instrumental belief that is conceptually similar to extrinsic motivation and is cognition (as opposed to emotion) regarding the benefits of using a system. The perceptions of control (over a system), enjoyment or playfulness related to a system, and anxiety regarding the ability to use a system do not provide a basis for forming perceptions of instrumental benefits of using a system. For example, control over using a system does not guarantee that the system will enhance one’s job performance. Similarly, higher levels of computer playfulness or enjoyment from using a system do not mean that the system will help an individual to become more effective (e.g., Van der Heijden, 2004). Therefore, it is expect that the determinants of perceived ease of use will not influence perceived usefulness. The summary of the various constructs used for in various adoption models are summarised and listed in the table 2.
  51. 51. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 51 Table 1:Models and Theories of Individual Acceptance Models and Theories Constructs Theory of Reasoned Action (TRA) by Fishbein and Ajzen (1975) derives from psychology to measure behavioral intention and performance. Attitude Subjective norm Technology Acceptance Model (TAM) by Davis (1989) develops new scale with two specific variables to determine user acceptance of technology. Technology Acceptance Model 2 (TAM2) by Venkatesh and Davis (2000) is adapted from TAM and includes more variables. Perceived Usefulness Perceived Ease of Use Subjective Norm* Experience* Voluntariness* Image* Job Relevance* Output Quality* Result Demonstrability* * indicates TAM2 only Theory of Planned Behavior (TPB) by Ajzen (1991) extends TRA by including one more variable to determine intention and behavior. Attitude Subjective norm Perceived Behavioral Control Combined TAM and TPB (C-TAM-TPB) by Taylor and Todd (1995). Perceived Usefulness Perceived Ease of Use Attitude Subjective norm Perceived Behavioral Control Innovation Diffusion Theory (IDT) by Rogers (1962) is adapted to information systems innovations by Moore and Benbasat (1991). Five attributes from Rogers’ model and two additional constructs are identified. Relative Advantage* Compatibility* Complexity* Observability* Trialability* Image Voluntariness of Use * indicates Roger’s constructs. Unified Theory of Acceptance and Use of Technology Model (UTUAT) by Venkatesh et al. (2003) integrates above theories and models to measure user intention and usage on technology Performance Expectancy Effort Expectancy Attitude toward Using Technology Social Influence Facilitating Conditions Self-Efficacy Anxiety
  52. 52. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 52 Taking this into consideration, the present study focuses on Tablet pc adoption models that influence the adoption of Tablet pc. For this purpose, Theory Technology acceptance model (TAM) perceived risk was used to construct a conceptual model to study the adoption Tablet pc. It is important for Tablet pc service providers to understand the factors influencing the intention to use or adopt Tablet pc. Further, this study also validates the model by explaining the behavioral intentions from the user’s perspective; the findings of this research not only help Tablet manufactures to develop a more user-accepted Tablet pc adoption, but also provide insight into the best way to promote new systems to potential users 3.4.1 Application of Adoption Models The application of adoption models for various technology products are summarized and presented in table no. 2. The following table i.e. Usage technology Adoption Model lists the key application studies carried details in the area of technology adoption. The table gives the details of the technology selected for the study and also the details of the adoption models used for the validation.
  53. 53. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 53 53 4. Application of Technology Adoption models. Table No : 02 Sl.No Year Name of author Sector/industries About 01 2009 Marie Pierre Healthcare A questionnaire, based on the Technology Acceptance Model (TAM), was developed. A panel of experts in technology assessment evaluated the face and content validity of the instrument. Two hundred and thirty-four questionnaires were distributed among nurses and doctors of the cardiology, pulmonologist, and internal medicine departments of a tertiary hospital. Cronbach alpha was calculated to measure the internal consistency of the questionnaire items. Construct validity was evaluated using interitem correlation analysis. Logistic regression analysis was performed to test the theoretical model. Adjusted odds ratios (ORs) and their 95% confidence intervals (CIs) were computed. Results: A response rate of 39.7% was achieved. With the exception of one theoretical construct (Habit) that corresponds to behaviors that become automatized, Cronbach’s alpha values were acceptably high for the remaining constructs. Theoretical variables were well correlated with each other and with the dependent variable. The original TAM was good at predicting telemonitoring usage intention, Perceived Usefulness being the only significant predictor (OR: 5.28, 95% CI: 2.12–13.11). The model was still significant and more powerful when the other theoretical variables were added. However, the only significant predictor in the modified model was Facilitators (OR: 4.96, 95% CI: 1.59–15.55). 02 2009 Vincent S. Lai internet banking The technology acceptance model (TAM) has been applied in different contexts to investigate a wide range of information technologies (IT), and a cumulative tradition has already been developed in this stream of research. Most TAM studies have been empirical investigations, using the survey approach with great success.
  54. 54. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 54 54 TAM is a mature model and has been validated in different contexts. However, it still needs to be empirically investigated for its invariance across different respondent subgroups in order to make sure that different sample profiles would not have a negative effect on the findings. Unfortunately, this has not happened in most TAM research. Here, we applied different levels of invariance analysis on the TAM construct in the context of Internet banking acceptance. 03 2012 Versha Mehta Self-Service Technologies in Banks Self-service technologies have found an immense use in our daily activities owing to the rapid advancement in technology, paradigm shift in the taste and changing life-style of consumers as well. To provide maximum benefit to their consumers, the firms have been continuously finding alternatives to services which are in consonance with consumer's needs, expectation and life-style besides providing them the satisfaction. Hence, present study is an understanding of factors that lead to the formation of consumer's attitude towards using self-service technology and finally its acceptance.
  55. 55. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 55 55 04 2011 Hala Al-Khatib & Habin Lee E-Government This paper proposes a conceptual model to explain user acceptance of E-Government systems considering the diverse layers of user groups. Due to digital division developing countries are providing e-Government services to heterogeneous user groups including non-educated and less skilful citizens for using computer based systems. Therefore this paper considers support quality of E-Government systems is one of critical success factors and integrates the factor in a widely adopted user acceptance and success model of information systems. 05 2012 Abdulaziz Alrashidi E-Government The study has been focused on the integration of motivation into the technology acceptance model (TAM) and theory of planned behavior (TPB) towards using e Government. An online survey was created to measure the user opinion about the e Government ease of use, usefulness, and motivation. 06 2013 Hari Mohan & Norani Ahmad internet banking The objective of this study is to determine factors that influence individual intention towards online banking In Malaysia. Specifically, the study examines the influence of Self Efficacy (6 item), Trust (6 item), Perceived Ease of Use (5 item) and Media reference (4 item) on the intention towards Online banking. Each variable is measured using 7-point interval scale. To achieve a more balance findings among the internet banking users in Malaysia, a total of 250 questionnaires to online bank customers at 4 major banks in Klang Valley, Selangor, and across the major cities in Penang, Ipoh & Johor. 210 usable questionnaires were returned with a response rate of 84%. The data was analysed using SPSS. It was found that Self Efficiency; Trust; Perceived Ease of Use are significantly related to the intention to adopt internet banking among the users in Malaysia. Perceived Ease of Use was the main determinant towards the intention for online banking as compared to Self-Efficacy and Trust.
  56. 56. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 56 56 07 2013 Nurudeen Abdulkadir & Shehu Inuwa Galoji Mobile Banking This study extends the applicability of Technology Acceptance Model (TAM) and Theory of Planned Behavior (TPB) constructs to investigate the significant factors influencing users’ adoption of mobile banking services in one of the Malaysian public universities. The research model was empirically tested through a survey. Data collected from 125 respondents were analyzed by means of multiple regression. Findings showed that perceived usefulness and social influence have significant impact on mobile banking adoption. 08 2011 Yi-Hsuan Lee & Yi-Chuan Hsieh E-Learning This study intends to investigate factors affecting business employees’ behavioral intentions to use the E- Learning system. Combining the innovation diffusion theory (IDT) with the technology acceptance model (TAM), the present study proposes an extended technology acceptance model. The proposed model was tested with data collected from 552 business employees using the e-learning system in Taiwan. The results show that five perceptions of innovation characteristics significantly influenced employees’ e-learning system behavioral intention. The effects of the compatibility, complexity, relative advantage, and trial ability on the perceived usefulness are significant. In addition, the effective of the complexity, relative advantage, trial ability, and complexity on the perceived ease of use have a significant influence. Empirical results also provide strong support for the integrative approach. 09 2011 Henny Medyawati Marieta E- Banking The object of this research is customers on the five major banks in the city of Bekasi namely Bank Mandiri, BCA, BRI, Bank Danamon, and BNI. This study aimed to analyze the implementation of E-Banking with the approach of Technology Acceptance Model (TAM). The research method is a survey method with a descriptive analysis and statistical analysis. The data is processed and analyzed by multiple linear regression statistical models using statistical software. The results of this study indicate
  57. 57. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 57 57 Christiyanti & Muhammad Yunanto that the person's ability to use computers, and interface design does not significantly influence perceived ease of use. Experience of computer use, relevance, security and privacy significantly influence the perceived ease of use. 10 2013 L. Hartmann, F. Kerssenfischer T. Fritsch, and T. Nguyen Customer Self- Service Portals The attitude of users towards an online customer self-service portal, which is newly introduced by one of the biggest finance companies worldwide, is the focus of this article. The Technology Acceptance Model (TAM), proposed by Davis in 1986, is applied to evaluate 521 customer responses to a questionnaire consisting of 22 questions. The authors choose partial least squares (PLS) as statistical instrument and define “attitude of customers towards the online self-service portal” as the dependent variable. Apart from this, six factors are specified to directly or indirectly correlate with attitude. 11 2013 Mohamed Gamal Aboelmaged and Tarek R. Gebba Mobile Banking This study aims at extending our understanding regarding the adoption of mobile banking through integrating Technology Acceptance Model (TAM) and Theory of Planned Behavior (TPB). Analyzing survey data from 119 respondents yielded important findings that partially support research hypotheses. The results indicated a significant positive impact of attitude toward mobile banking and subjective norm on mobile banking adoption. Surprisingly, the effects of behavioral control and usefulness on mobile banking adoption were insignificant.
  58. 58. UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING TECHNOLOGY (TRAT) A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR MBA-PROGRAMME 58 58 12 2011 Basheer A. Al- alak & Ibrahim A.M. Alnawas E-Learning The aim of the study was to investigate Jordanian lecturers' attitudes towards the adoption of e-learning system. A number of hypotheses were formulated for this purpose. The findings of the study show that there existed positive relationship between perceived usefulness, perceived ease of use, computer knowledge, management support and intention to adopt. Whereas there existed negative relationship between normative pressure, computer anxiety and intention to adopt. Based on the results a number of recommendations were proposed, and suggestions for future studies were made. 13 2013 Shallone K. Chitungo & Simon Munongo Mobile Banking Improvements in wireless technologies and increased uptake of advanced mobile handsets have led to a growing trend in mobile banking activities on a global scale. This empirical study sought to investigate the applicability of the extension of the renowned framework of Technology Acceptance Model (TAM) in determining factors that influence unbanked rural communities Zimbabwe‟s intention to adopt mobile banking services. A self-administered questionnaire was developed and distributed in Zaka, Chiredzi, Gutu and Chivi rural districts Out of the 400 questionnaires, only 275 useable questionnaires were returned, yielding a response rate of 69%.Results were subsequently analyzed by the SPSS package. The findings indicate that the extended TAM can predict consumer intention to use mobile banking. 14 2012 Geetha Kallanmarthodi and Malarvizhi Vaithiyanathan E-Banking Financial liberalization and technology revolution have allowed the developments of new and more efficient delivery and processing channels as well as more innovative products and services in banking industry. A strategic challenge facing banking institutions today is the growing and changing needs and expectations of consumers in tandem with increased education levels and growing wealth. Consumers are becoming increasingly discerning and have become more involved in their financial decisions. This study determines the factors influencing the consumer’s adoption of e-banking in

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